Loading
in Lathrop, CA
Both bank statement and DSCR loans let you skip W-2 income verification. The difference is what you're buying and how you make money.
Bank statement loans work for self-employed borrowers buying owner-occupied or investment properties. DSCR loans only work for rental properties and ignore your personal income entirely.
Bank statement loans approve you based on deposits into your business or personal accounts. We average 12 or 24 months of statements to calculate qualifying income.
You can use these for primary homes, second homes, or investment properties in Lathrop. Credit scores start at 600, and you need 10-20% down depending on property type.
These work best for business owners, freelancers, or contractors whose tax returns don't show their true earning power. The catch is higher rates than conventional loans.
DSCR loans approve you based on rental income only. We divide the property's monthly rent by its mortgage payment to get a ratio.
Most lenders want a DSCR of 1.0 or higher, meaning rent covers the full payment. Some allow 0.75 if you put more money down.
You can't use these for homes you'll live in. They're strictly for investors buying rental properties in markets like Lathrop where rent-to-price ratios make the numbers work.
Bank statement loans look at you. DSCR loans look at the property. If you're self-employed buying a home to live in, bank statement is your only option between these two.
DSCR loans usually close faster because there's no income verification or employment check. Bank statement loans require collecting months of statements and writing explanation letters.
Rates vary by borrower profile and market conditions. DSCR typically prices slightly better for strong properties because lenders view rental income as more stable than business deposits.
Choose bank statement if you're self-employed and buying a home to live in. Also choose it if you're buying a rental but your personal income is stronger than the property's cash flow.
Choose DSCR if you're buying a rental property with solid rent numbers and you want to avoid sharing tax returns or business financials. Also better if you own multiple rentals already.
Some Lathrop investors use both programs. They'll use DSCR for turnkey rentals with tenants in place and bank statement for properties they're rehabbing or houses they'll live in first.
Yes. Bank statement loans work for investment properties, but you'll need to show sufficient personal income from your bank deposits to qualify.
No. DSCR loans don't verify employment, income, or tax returns. Approval is based solely on the rental property's cash flow.
DSCR loans often price slightly better for strong properties. Both carry higher rates than conventional loans due to flexible qualification.
Yes, both programs allow rate-term and cash-out refinances. DSCR is popular for rental portfolio refinancing without income verification.
Bank statement loans start at 600. DSCR loans typically require 620-640 minimum depending on the lender and down payment.